Dow Climbs to Five-Year High as Fed Bets Offset China
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U.S. stocks rose, sending the Dow Jones Industrial Average to its highest level since 2007, as speculation the Federal Reserve will continue stimulus measures overshadowed concern over spending cuts and China’s economy.
Airlines rallied while industrial and energy stocks fell as oil dropped to its lowest level since December. Yahoo! Inc. jumped 3.5 percent after an analyst at Barclays Plc raised his rating on the company. Homebuilders advanced as D.R. Horton Inc. and Ryland Group Inc. rose at least 3.2 percent. Google Inc. jumped 1.9 percent to a record, while Apple Inc. retreated 2.4 percent to its lowest level in more than a year.